REVENUES at online gaming firm Sportingbet have taken a tumble but Australian punters flocking to place bets on horse racing classic the Melbourne Cup have kept its profits on track.

Sportingbet, the subject of a £407million takeover bid by Britain’s biggest bookmaker William Hill and European gaming group GVC, reported a 35 per cent fall in revenues to £38.8million between August 1 and October 31 as the amount of cash wagered fell to £594.3million from £693.7million last time.

The group blamed a lack of sporting events during the period as well as continuing weakness in key European markets Spain and Greece, hit by growing regulation and recession. The popularity of online poker has also dived.

However its Australian business, which accounts for the majority of group profits, saw amounts wagered rise by 3.5 per cent and customer numbers grow 29 per cent.

Chief executive Andrew McIver said demand improved further in November as the Melbourne Cup Day, which included Unpretentious among the winners, saw an 8 per cent increase in clients and a 21 per cent rise in the number of bets.

The shares slipped 1½p to 44½p

“Notwithstanding this initial period of relatively volatile trading full-year results will meet current expectations,” he said. The shares slipped 1½p to 44½p.